12:25 PM EDT, 10/30/2025 (MT Newswires) -- UnitedHealth Group ( UNH ) to demonstrate disciplined repricing and portfolio overhaul in 2026 to stabilize margins across UHC and Optum segments, Morgan Stanley said in a Wednesday research note.

Within UHC, Medicare Advantage membership is expected to decline by 1 million due to benefit cuts and network reductions, the firm noted. A 10% medical cost trend based on pricing will help in margin recovery, according to the note.

Optum Health faces a 10% membership reduction due to network narrowing, but payer contracting and operational discipline could ramp margins, positioning the segment for long-term targets of 6% to 8% by 2028. Optum Rx continues to post double-digit revenue growth, while Optum Insight invests in AI-first platforms for future acceleration, analysts wrote.

The brokerage said it now expects 2025 EPS of $16.28 on revenue of $448.07 billion, compared with $16.07 and $448.46 billion earlier, respectively.

For 2026, Morgan Stanley maintained EPS guidance of $17.58 but revised its revenue forecast to $461.62 billion from $465.98 billion earlier. For 2027, the brokerage expects EPS of $20.45 on revenue of $479.40 billion, revised from prior $20.49 and $489.11 billion, respectively.

Morgan Stanley, maintaining its overweight rating on the stock, raised its price target to $411 per share from $395 earlier.

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